The euro zone’s near-deflation isn’t much out of line with the rest of the developed world’s.KAI PFAFFENBACH/Reuters
The Toronto stock market gained ground for a fifth session in a row on Friday amid data showing solid European growth in the final quarter of last year and an unexpectedly strong performance by Canadian manufacturers.
The S&P/TSX composite index gained 87.05 points to 15,315.57 led by the resource sectors.
"Who wants to go into the weekend in a sour mood, especially when it's Valentine`s Day tomorrow?," said John Stephenson, president and CEO of Stephenson and Co. Capital Management.
The Canadian dollar rose 0.3 of a cent to 80.36 cents (U.S.) as Statistics Canada reported that manufacturing sales rose 1.7 per cent in December. That was far higher than the 0.5 per cent reading that economists had expected.
New York indexes were positive despite slipping consumer confidence. The University of Michigan's consumer confidence index came in at 93.6 during February, lower than the 98.5 reading that economists had expected.
The Dow Jones industrials ahead 53.36 points to 18,025.74, the Nasdaq gained 13.94 points to 4,871.55 and the S&P 500 index was up 5.6 points to 2,094.08.
The German economy grew by 0.7 per cent compared with the previous three-month period, which was much better than the 0.3 per cent increase that economists had expected.
Overall economic output across the euro zone was 0.3 per cent higher in the fourth quarter than the previous three-month period. That equates to an annualized rate of around 1.2 per cent but the performance was nevertheless higher than the 0.2 per cent increased anticipated by investors.
There was also optimism that Greece will come to an agreement with its eurozone creditors.
Greek Prime Minister Alexis Tsipras has agreed to allow government officials to start technical discussions with debt inspectors. The results will inform a meeting of the euro zone's finance ministers Monday.
Tsipras says a "mutually acceptable" deal is possible while German Chancellor Angela Merkel says her country is ready to compromise.
"What would be acceptable to the Greek government, I think, is just a little bit of forgiveness," added Stephenson.
"They need more money. They have to come to some sort of deal. But they want the terms to be a little less onerous."
The TSX found support from the energy sector, up 1.35 per cent as March crude advanced $1.96 to $53.17 (U.S.) a barrel.
The base metals sector climbed almost three per cent while March copper was unchanged atS$2.60 a pound.
April bullion advanced $10.90 to $1,231.60 an ounce and the gold sector rose 1.15 per cent.
The financials sector also lifted the Toronto market, up 0.8 per cent.
Stocks to watch include TransCanada Corp., which is trying to get approval for its stalled Keystone XL pipeline. Comparable earnings came in at $511-million (Canadian) or 72 cents a share, beating forecasts of 61 cents a share. TransCanada also upped its quarterly dividend eight per cent to 52 cents a share but its shares shed early gains and dipped 10 cents to $58.40.
RioCan Real Estate Investment Trust reports its fourth quarter net income plunged 35 per cent to $172-million or 54 cents per unit . Its units ticked 20 cents higher to $29.23.